Further to the news on 15 March that Conviviality Plc had to pay a surprise £30m tax bill, which is due for payment today, 29 March, the group is on the brink of collapse.
The owner of the Bargain Booze and Wine Rack chains has today confirmed its intention to appoint administrators as hopes of new bank support fade.
The company failed to raise £125m from an emergency cash call and falling into administration would mean that 2,600 jobs will be at risk across the two chains.
Over 20,000 of Britain’s pubs are supplied by the company’s Matthew Clark division. The trade body, the British Beer & Pub Association, said many could now face “short-term supply issues”.
Conviviality stated: 'Further to the announcement on 28 March 2018, and following discussions with its lending banks, the board has resolved to file notice of intention to appoint administrators to the company.
'Unless circumstances change, and in accordance with statutory requirements, the board intend to appoint administrators within 10 business days.
'The secured creditors can, however, appoint administrators without the requirement for notice.
'The directors intend to allow the business to continue to trade and the company continues to work alongside advisers in order to preserve as much value as possible for all stakeholders as it explores a number of inbound enquiries regarding a potential sale of all or parts of the business.'